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The Pensions Act 2008 (Commencement No. 14 and Supplementary Provisions) Order 2012

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EXPLANATORY NOTE

(This note is not part of the Order)

This Order brings into force section 87 (stakeholder pension schemes) of the Pensions Act 2008 (c.30) (‘the 2008 Act’) which amends section 3 of the Welfare Reform and Pensions Act 1999 (c.30), on 1st October 2012.

Section 3 of the Welfare Reform and Pensions Act 1999 relates to the duty of employers to designate a stakeholder pension scheme for relevant employees. Section 3, as amended by section 87 of the 2008 Act, requires employers to continue to deduct contributions from the remuneration of those relevant employees who are contributing to a stakeholder pension scheme before the coming into force of section 87, and to pass those contributions to the scheme.

Article 2 brings section 87 of the 2008 Act into force on 1st October 2012, the date on which the employer duties in sections 2 to 9 of the 2008 Act first apply to employers.

Article 3 makes supplementary provisions which apply from 1st October 2012, requiring an employer to notify an employee of the consequences of having made a request to cease making deductions.

This instrument has a savings impact on the private sector and civil society organisations. An assessment of that impact has been made. A copy of that assessment is available in the Libraries of both Houses of Parliament and alongside the instrument on www.legislation.gov.uk. Copies may also be obtained from the Better Regulation Unit of the Department for Work and Pensions, Caxton House, Tothill Street, London SW1H - 9NA or on the Department for Work and Pensions website: http://www.dwp.gov.uk/publications/impact-assessments.

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Impact Assessments generally accompany all UK Government interventions of a regulatory nature that affect the private sector, civil society organisations and public services. They apply regardless of whether the regulation originates from a domestic or international source and can accompany primary (Acts etc) and secondary legislation (SIs). An Impact Assessment allows those with an interest in the policy area to understand:

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  • The estimated costs and benefits of proposed measures.
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